TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 32515 with Transworld Systems, Inc., of Rancho Cordova, CA, for external collection services, to extend the term of contract for a period of one year, with the option to renew for two additional one-year periods. (Citywide)
DISCUSSION
City Council approval is requested to amend the agreement with Transworld Systems, Inc. (Transworld), a private collection agency, to extend the contract term by one-year, with the option to renew for two additional one-year periods.
On November 8, 2011, the City Council authorized the City Manager to enter into a contract with NCO Collections (now Transworld), for collection services for various types of delinquent accounts, which include the following: utilities (gas, water, refuse, and sewer), ambulance transports, false alarms, police booking fees, business licenses, marina fees, City taxes, property damage claims, and other City permits and charges, for a period of five years. Most recently, on October 11, 2016 the City Council authorized the City Manager to extend Contract No. 32515 for a period of one year, with the option to renew for two additional one-year periods, and will expire on November 8, 2019.
The Commercial Services Bureau of the Financial Management Department (FM) currently pursues delinquent accounts for the City. Staff work with delinquent accounts and attempt to collect payment for approximately six months from the original invoice date. Delinquent accounts that remain unpaid after six months, despite staff’s best efforts, are turned over to Transworld for collection.
The City will soon begin the selection and implementation of a new collection system as part of the City’s ERP project, known as LB COAST. A Request for Proposals (RFP) for a new collection system will be developed in coordination with the Technology and Innovation Department (TID). Once a collections system is chosen ...
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